This chapter sets out the key features of the Australian workforce and the changes that have occurred in the structure of the workforce in recent decades, and discusses the likely demographic landscape in the future. It forms an essential introduction to the others chapters in this book, providing the national context and explaining the important role a policy of managing diversity (MD) can and should play within institutions. It analyses the composition of the labour market in Australia by gender and other key characteristics such as age and country of origin, and reviews the characteristics of different industries and occupations, as well as discussing the issues surrounding permanent, casual, full-time and part-time work in relation to pay equity. It discusses the increasing participation of women in the workforce, in particular women with children, and the ways in which work patterns affect family life. The chapter concludes with brief comments on the impact of ‘globalisation’ on business and the labour market.